The EU wants to double steel tariffs due to Trump and protect itself from China.
The European Commission presents a plan to boost artificial intelligence in the European Union.
BrusselsNew protectionist measure from the European Union. After Donald Trump raised tariffs on steel from China, Brussels fears that Chinese companies have overproduction and flood the European market with products made from this material at very low prices. For this reason, the European Commission proposed this Tuesday to increase import taxes on steel entering the European bloc. A highly symbolic measure for an administration that began as the European Coal and Steel Community.
Currently, tariffs on these products are at 25%, and starting in June 2026, the European Commission plans to double them to 50%, in line with the rate already applied by the United States to these imports. In fact, the trade agreement signed this summer by Washington and Brussels does not include steel products, so the European industry in this sector is excluded from the 15% cap and must pay the 50% imposed by the American powerhouse.
The new border taxes proposed by the European Commission will begin to apply after a maximum of 18.3 million tons of steel have been imported within a one-year period. Until this figure is reached, imports will be duty-free. However, this limit was currently higher and represents a 47% reduction compared to last year's quotas.
In this way, Brussels aims to protect the European steel industry from Chinese competition, which exports the most products to the EU, and ensure that the European bloc maintains an industrial sector as essential to European strategic autonomy as this one. According to EU sources, the steel industry is currently producing at only 67% of its capacity, and the measure aims to increase this rate to around 80%. "It is a decisive sector for European strategic autonomy and essential for the European economy," European Trade Commissioner Maros Sefcovic stressed at a press conference.
On the other hand, and following the apparent truce in the trade war between the US and the EU, both powers are negotiating to lower the tariffs they apply to each other in the steel sector and form a united front against competition from China. Pending the White House's final decision, the European Commission, led by Ursula von der Leyen, is seeking to return transatlantic import tariffs to levels prior to Trump's return, at 25%. In fact, for both Brussels and Washington, their main fear in terms of trade is, above all, the Asian giant.
The only countries that will be excluded from the tariffs proposed by the European Commission are Iceland, Norway, and Liechtenstein. However, it will affect steel products from the United Kingdom, which has raised alarm bells in the British steel industry because 80% of its exports are in the EU, according to data from the European Commission. Financial TimesIn any case, this measure still requires the approval of a qualified majority of the Member States and the European Parliament. Therefore, it is likely that it will not be approved until next year.
The plan to boost artificial intelligence
The European Commission also presented a strategic plan this Tuesday to boost the use and industry of artificial intelligence in the European Union. The initiative includes various measures that the European bloc intends to deploy and aims to boost the competitiveness of key sectors, such as healthcare, research, and innovation, among others.
Brussels' intention is to close the gap in the use of this technology with the United States and China, which lead the market. In this way, the EU executive aims to prioritize European artificial intelligence companies and strengthen the sector to gain strategic sovereignty, especially with respect to Chinese and American industries.